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Get your taxes done using TurboTax
The income reported on your W-2 form is the discount you received when you acquired the stock. You acquire the stock for less than the market price, so that difference is reported as wage income to you when you sell the stock.
You will receive a Form 1099-B reporting the stock sale which may list what you paid for the stock as the cost basis. A portion of that cost may be is what is being reported as wages on your W-2 form. So, you may need to adjust the cost basis reported on your Form 1099-B to include the discount reported on your W-2 form. You will see an option for that when you enter the Form 1099-B in TurboTax.
A portion of your gain on sale of the stock is reported on your W-2 form and the rest when you enter the stock sale. So, you are not getting double taxed, it is just that a portion of the gain is reported as wage income.
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